King: 'Unlikely' rates will rise substantially

The Governor of the Bank of England, Sir Mervyn King, has played down concerns that there could be a "tsunami" of repossessions if interest rates were to rise.

The warning was issued by Richard Banks, the head of the body set up to run the nationalised mortgages of Bradford & Bingley and parts of Northern Rock.

Appearing before the Treasury Select Committee, Sir Mervyn said it was unlikely that rates would rise substantially in the near future.

He also said that, while the property market was weak, most homeowners were coping well.